It is recognised that disasters can have widespread impacts, causing not only harm and damage to lives, buildings and infrastructure, but also impairing economic activity, with potential cascading and global effects. These impacts generate losses for households, businesses and governments as damages need to be repaired, homes and businesses rebuilt, and activities resumed. These financial costs may be catastrophic in nature, aggravating economic and social impacts. Achieving financial resilience is thus a critical component of effective disaster risk management.

This methodological framework for disaster risk assessment and risk financing is intended to help finance ministries and other governmental authorities in developing more effective disaster risk management strategies and, in particular, financial strategies, building on strengthened risk assessment and risk financing. While the framework does not specifically explore disaster risk reduction policies, it highlights the strong interconnections between disaster risk assessment, risk reduction and financial management, key building blocks for dynamic and continually evolving disaster risk management strategies.

Launch of the G20/OECD Methodological Framework

Developed as a response to a mandate from G20 Leaders, Finance Ministers and Central Bank Governors, the framework was presented and endorsed at the G20 meeting in Mexico City on 4-5 November 2012.